The State of Procurement in the EU: Key Insights and Takeaways

The 2025 State of Procurement Data Report, published by Amazon Business, offers a detailed analysis of the procurement landscape across five European countries (France, Germany, Italy, Spain, and the UK). With insights from over 3,500 procurement leaders worldwide, including these EU markets, the report highlights critical trends, challenges, and opportunities for procurement teams as they look to optimise operations, harness the power of AI, and align with ESG goals.

In this blog, we unpack the key findings from the EU markets, shedding light on the current and future state of procurement trends and strategies. For procurement managers, finance professionals, and business owners, this is your definitive guide to staying ahead in an evolving procurement environment.

Budget outlooks across the EU

Procurement budgets are on the rise, but so are the challenges:

• All surveyed EU markets report caution despite expected budget increases.
• UK leads with 64% of decision-makers expecting budget growth, followed by Spain (59%), France (57%), Italy (57%), and Germany (46%).
• However, rising costs remain a prominent concern for all: 
• UK (44%) and Spain (43%) report the highest cost pressures.
• Meanwhile, Italy (34%) and Germany (37%) show slightly less strain.

The growing gap between increased budgets and rising costs illustrates that procurement leaders must adopt smarter, more efficient strategies to ensure those additional funds drive measurable value.

Operational challenges hindering procurement teams

Efficiency is the name of the game, but operational complexity remains a significant barrier across the EU:

• Nearly half of procurement leaders highlight efficiency and complexity as their primary challenge, with rates ranging from 42% in Spain to 49% in the UK and Germany.
• Internal systems and processes are the top internal barriers: France (64%), Italy (62%), and UK (60%) lead the pack in reporting system inefficiencies as core stumbling blocks.

Additionally, collaboration with decision-makers and closing knowledge gaps has emerged as a key focus area. For instance, Germany reports 82% of procurement leaders struggling with insufficient collaboration and 83% citing a lack of specialist knowledge—the highest across the EU suggesting a need to focus on attracting new talent and upskilling procurement teams.

Lagging progress in AI adoption and implementation

While AI is widely recognised as a game-changer for procurement, the EU markets showcase a gap between aspiration and execution:

• Investment intentions in AI are remarkably high, ranging from 93% in Italy to 98% in France.

• However, most procurement leaders focus on short-term cost reduction instead of strategic AI implementation.

• Use cases like spend analysis dominate plans (UK 47%, Spain 40%, Italy 38%), while predictive analytics remains less prioritised.

AI's potential is underutilised within procurement, leaving a wealth of long-term strategic opportunities untapped. Nevertheless, leaders in markets like the UK (32%), France (43%), and Spain (40%) show strong interest in learning more about AI’s potential for advanced data analytics—a promising sign of future growth.

The growing challenge and opportunity of ESG initiatives

Environmental, Social, and Governance (ESG) goals have ascended as organisational priorities, but they are not yet fully embedded within procurement operations:

• Overarching ESG goals are increasing year-on-year (UK 66%, France 58%, Italy 55%, Spain 50%), but procurement teams across the EU are struggling to translate these goals into day-to-day priorities.
• The decline in ESG prioritisation within procurement is stark:

•  Italy dropped from 52% (2023) to just 17% (2025).

•  Spain has fallen to 8%—the lowest among EU.

On top of this, securing sustainable suppliers remains problematic for many markets. Germany (73%) stands out, with the highest percentage of procurement leaders struggling to find regional or lower-risk suppliers for ESG compliance.

Driving innovation to overcome procurement’s strategic disconnect

The findings of the 2025 State of Procurement Data Report reveal a clear disconnect between ambitions and execution. Procurement teams in the EU are grappling with short-term pressures while attempting to tackle strategic priorities—a balancing act that demands innovation, strong leadership, and analytics-driven insights.

Key takeaways for procurement leaders

1. Focus on efficiency by streamlining internal systems and removing bottlenecks. Investing in scalable digital tools is essential to support your evolving operational needs.
2. Maximise AI’s potential, not just for cost reduction but to leverage predictive analytics, optimise supply chain strategies, and enhance decision-making.
3. Close the ESG implementation gap by integrating sustainability goals deeper into procurement practices. Partnering with suppliers who align with your ESG objectives is key.
4. Promote cross-functional collaboration to enable procurement to function as a strategic growth lever rather than merely a cost-management function.

A new era of Smart Business Buying

The 2025 State of Procurement Data report underscores that procurement is no longer a back-office function but a strategic driver for business growth. Moving forward, businesses have a critical need to balance operational efficiency, AI adoption, and ESG goals to stay competitive.

At Amazon Business, our solutions are designed to help procurement teams across various verticals adapt and thrive amidst these challenges. From insights into smart business buying to tools that streamline procurement processes, we enable leaders to transition into a new era of innovation.

Want to learn more? Download the full report and discover how your organisation can optimise procurement to achieve both short-term wins and long-term growth.